Amazon prepares music streaming service

Amazon may be the next to enter the music market via streaming. Several international outlets have reported, based on information from sources, that the company plans to launch a service of its kind.

The company has been negotiating with record companies for months to make the project feasible, but the proposed values ​​are considered too low.

To give you an idea, while Spotify had to give record companies $ 500 million in 2013 to make their customers’ music available, Amazon offered a $ 25 million annual fixed payment to industry giants and $ 5 million to record companies independent.

The reason for what one of the indies considered to be “insanity” is the power that Amazon has over the entertainment industry, having become one of the leading retailers of CDs and downloads; in the past the company has already closed deals of this type with book publishers.

According to the sources, the Amazon service will be linked to the company’s Prime plan and will limit the number of times the customer can listen to each musical track, in a strategy to leverage the sale of MP3 files.

With information: Wall Street Journal, Re / code, Billboard; via Digital Trends

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